Bihar Property Becomes Costlier as Circle Rates Likely to Increase, Registration Fees to Rise

Patna, April 1: Property buyers in Bihar may have to shell out more as the government is planning to increase circle rates (MVR) . In several areas, rates could rise by 3 to 4 times, particularly in cities and rapidly developing regions.

Cities Most Affected

Major cities including Patna, Gaya, Muzaffarpur, and Bhagalpur are expected to see the sharpest increase in rates. The total cost of property transactions in these urban centers could rise considerably.

Why the Decision is Being Considered

Sources indicate that there is a significant gap between current circle rates and actual market values. Lower circle rates have encouraged buyers to under-report property values to save on taxes, resulting in revenue loss for the state. The revision aims to bring circle rates closer to market values and curb tax evasion.

Impact on Homebuyers

The hike will directly affect homebuyers through:

• Higher stamp duty payments

• Increased registration fees

• Overall rise in property purchase budget

Buyers across all income groups may find it more challenging to afford properties.

Impact on Real Estate Market

Experts believe that property transactions may slow down initially as buyers and investors adopt a cautious approach. However, in the long term, the move is expected to bring greater transparency and stability to the real estate sector.

Government Benefits

The decision is expected to:

• Boost government revenue through higher stamp duty collections

• Curb tax evasion by preventing under-valuation of properties

• Make registration processes more transparent

Advice for Buyers

If you are planning to buy land or a flat:

• Check new rates before proceeding

• Reassess your budget to account for additional registration costs

• Plan carefully to avoid financial strain